300MW combined cycle gas engine power plant will be built at Sandakan POIC

SANDAKAN: A 300-megawatt (MW) combined cycle gas engine power plant will be built to address the acute power outages currently being experienced by the people in the east coast of Sabah.

Sabah Chief Minister Datuk Seri Musa Aman (pix) said the state cabinet has mandated the wholly state owned Sabah Development Energy (Sandakan) Sdn Bhd to develop, construct and operate the independent power producer (IPP) at the Sandakan Palm Oil Industrial Cluster (POIC).

"We are also thankful to Prime Minister (Datuk Seri Najib Abdul Razak) because he has given the green light for Petronas to supply reliable liquefied natural gas (LNG) at reasonable rates for the IPP to be sustainable," he said when officiating the Sabah state goverment financial assistance presentation ceremony to schools and non Islamic religious bodies for Sandakan region here, today.

He said the project was expected to be carried through a modular approach with the first 95MW expected to be ready to supply electricity by third quarter of 2018. The project is expected to be fully completed by 2021.

The necessary application, which had been submitted to the Ministry of Energy, Green Technology and Water (KeTTHA), was currently pending approval by the minister in Kuala Lumpur, he added. — Bernama